EPF Money Withdrawal Via UPI Soon? Here's What We Know

Last Updated:January 16, 2026, 20:41 IST

Once operational, the initiative is expected to benefit nearly eight crore subscribers across the country.

AI-generated image used for representation

EPFO subscribers may soon be able to access part of their provident fund instantly through UPI, with direct transfers to bank accounts expected to start by April, according to a senior government source.

The labour ministry is working on a new system that will allow Employees’ Provident Fund (EPF) members to withdraw a portion of their savings without filing formal claims. Under the proposed model, a part of the EPF balance will remain locked for retirement, while a sizeable amount will be made available for instant withdrawal through the Unified Payment Interface (UPI).

“The subscribers will be able to see the eligible EPF balance available for transferring into their seeded bank accounts," the source said.

The new facility is expected to make fund access quicker and simpler. Instead of submitting withdrawal requests and waiting for approvals, members will be able to transfer eligible funds directly using their linked UPI ID and PIN. This will ensure secure and seamless transactions.

Explaining the process, the source said, “Once the money is transferred into bank accounts, the members can use the money the way they want, like making payments electronically or withdrawing through bank ATMs using debit cards."

At present, EPF members must file withdrawal claims, which are processed by the Employees’ Provident Fund Organisation (EPFO). While the organisation has introduced auto-settlement of claims, the process still involves paperwork and system checks. The proposed UPI-based model aims to remove this step entirely.

The EPFO is currently resolving software and technical issues to ensure smooth implementation of the system. Once operational, the initiative is expected to benefit nearly eight crore subscribers across the country.

Under the existing auto-settlement mechanism, eligible withdrawal claims are settled electronically within three days without manual intervention. The limit for such claims has already been increased from Rs 1 lakh to Rs 5 lakh. This allows faster access to funds for needs such as medical treatment, education, marriage and housing.

However, officials noted that EPFO cannot allow direct withdrawals like banks since it does not hold a banking licence. Despite this, the government wants EPFO services to function “at par with banks" to improve ease of living for members and reduce administrative pressure on the organisation.

Every year, EPFO processes more than five crore claims, most of which are related to EPF withdrawals. The new system is expected to significantly reduce this workload by enabling direct, claim-free access to eligible funds.

(With inputs from PTI)

News india EPF Money Withdrawal Via UPI Soon? Here's What We Know

Read More